The present invention relates to systems and methods for processing credit card transactions at an off-line vending machine or vending system, and relates particularly to a remotely located and unattended point of sale location at which a vending machine is installed.
Vending operators have found it desirable to be able to install vending machines and systems at numerous locations for point of sale vending operations, including in remote locations and, in some instances, in locations that have proven susceptible to criminal activity, including burglary of monies inserted into the vending machine or system during vending operations. In light thereof, it would be beneficial to be able to vend a product based upon credit rather then upon inserted monies.
While the use of credit cards in certain vending situations, e.g. insertion of a credit card at a gasoline pump island at a multi-pump gasoline station, with ready access to phone and/or communications lines, and most sales of at least $10.00 or greater, has proven advantageous, it has not generally been considered economically or practically feasible to be able to employ credit cards for vending of products at prices often of $1.00 or less from individual vending machines, particularly from machines installed at remote locations without ready access to phone or other communication lines. In such regard, the cost of equipment and other costs to provide on-line communications to determine a credit card""s validity and its credit status, to provide authorization, and to initiate funds collection for transactions can be prohibitive when the sale prices of products are all around one dollar. The time to complete an on-line transaction is also a problem when there are a number of transactions being made in a short or limited period of time.
At present there are many on-line credit card systems for authorizing credit card transactions, such as U.S. Pat. No. 4,558,211 to Berstein, wherein is shown the use of intermittent communications to periodically update local hot card files at the point of sale. Another approach is shown in U.S. Pat. No. 4,485,300 to Peirce, where on-line communications are required if certain parameters defined by the issuer are met. Another system, which reduces on-line communication, is described in U.S. Pat. No. 3,982,103, wherein the credit card has recorded thereon the aggregate value of transactions occurring at xe2x80x9coff-linexe2x80x9d terminals during a period of time. The terminals utilize the aggregate value to help determine if on-line communication is required. U.S. Pat. No. 4,812,628 by Boston discloses how the amount of the transaction can be compared to the risk assessment stored on the card for determining whether on-line communication is required.
Another on-line system and method for processing debit and credit cards is shown in U.S. Pat. No. 5,285,382 to Muehlberger, wherein transactions above a predetermined amount are communicated on-line at the time of the transaction, while transactions below the predetermined amount are accumulated for communication in a batch at a later time when communication rates are reduced. Such patent also teaches that on-line approved and rejected card account numbers can be stored for reference during a second predetermined time period so as to limit the next for on-line communications.
While such noted system may be worthwhile in various settings and circumstances, they do not address situations and circumstances where a vending machine or system is installed at a remote location without ready access to communications or data lines for on-line transactions. The present invention addresses such a situation and circumstances. In doing so, it is recognized that there is some risk involved in extending or authorizing any credit for a vend transaction without checking a user""s credit on-line. The risk of loss from an improvident grant of credit may, however, often be less then the risk of loss from burglary of a vending machine""s coin or currency deposits, and may also serve to deter vandalism or destruction of vending machines in some instances, such as when a person wreaks serious damage upon a machine just to obtain one or two soft drinks whose costs are, perhaps, a dollar or less a piece.
The system and method of the present invention are thus primarily directed to credit vending transactions under off-line conditions and in off-line situations, and provide a manner of retaining and exercising control with regard to, and over, credit vend transactions and the pattern of such transactions for a given credit card account number, and may include limitations on the authorization of credit for a vend transaction at a certain point or during a certain period of time, even though the total amount of credit that would otherwise be approved over some extended time, period may not be considered problemsome or a limitation. For example, the total credit approved for a particular credit card account number for a given week at a particular vending machine might typically range between $10 to $20, and not exceed a credit limit established for such credit card account number. At an expected low activity time period during such week, however, such as a time period in the middle of the night, a credit limitation of 5 or 6 successive transactions for a credit card account number that has no previous credit approval history, might be established so as to try to limit the use being made of a credit card. The present system provides control over transaction activity based on the type of products of the vending machine, the machine""s location, and the activity levels expected during different times of the day and week, as well as any prior history relating to use of the credit card account numbers at such location.
The present invention utilizes a system and method for approving and processing credit card transactions in an off-line vending machine or system having an associated card reader and transaction control portion or transaction controller, which transaction control portion typically includes a microprocessor, a real time date/time clock, and memory storage. In general, the system is so constructed or programmed to operate to verify acceptable card types, including, in many instances, by verifying card number check sums, and to also determine that, in order for a credit vend transaction to be authorized, the credit card presented at the card reader is currently valid, i.e., unexpired, and has an authorized credit limit at such vending machine that has not previously been reached. The system may also be so constructed or programmed to be operable to limit the number of transactions that are authorized for a given credit card at a given point of sale location during specified time periods.
In some embodiments, the system may be constructed or programmed to check recorded transactions of a credit card account number in the system to limit the number of authorized transactions to some number based upon authorized transactions occurring during some previous time period. The limitation number can be made to automatically change during expected times of greater activity, expected times of little activity, or expected times of no activity.
The system can additionally provide, in certain embodiments, transaction limitation numbers which automatically vary according to specified times of activity, and are set in the program when the transaction listing is manually uploaded to the system.
In certain embodiments, the system can check a credit card account number against a listing of previously approved card numbers to identify xe2x80x9cpreferredxe2x80x9d customers or account numbers and to allow for an increase in the transaction limitation numbers for such xe2x80x9cpreferredxe2x80x9d customers.
The system can also include, in some embodiments, programming which compares a credit card account number to an off-line list of a xe2x80x9chotxe2x80x9d card numbers before allowing a transaction.
The system can also provide in various embodiments for the updating of a xe2x80x9chotxe2x80x9d card list and of a known good customer (preferred card) list.
In general, the transaction controller is operable, upon determining that a credit card vend transaction will be authorized, to interact with its associated vending machine or system so as to enable a vend operation thereby and to receive notification therefrom indicating that a vend has subsequently occurred, such as by receiving notification that product delivery was effected.
One embodiment of the system utilizes discrete control/data lines, such as are present with standard single price vending machines and their connectors, to enable vend and to determine vend completion.
Another embodiment of the system accomplishes such interactions by utilizing a multi-drop data bus (MDB).
Following the completion of a vend by the vending machine, the system of the present invention will record the appropriate information for the credit vend transaction, which may typically include the credit card number, the time, and the sale price, for later retrieval, such as by downloading to a hand held data transfer device, when the vending machine or system is thereafter restocked or serviced.
Another embodiment of the present system and method provides for the downloading of the vending machine""s activity via a DEX port of the vending machine at the time when the card transaction information is downloaded from the transaction controller.